Staying Legal with Premium Rebating

[riskwriter101]

We are a medium sized independent agency in California. We are trying to put the finishing touches on our marketing plan for the rest of the year. We would like to 'reward' our clients for doing business with us, but do not want to get into trouble for 'rebating premium' anyone have a clear understanding of that law. I have visited the California DOI website and am still unclear of the boundries.

Thanks.... Mike

 

[ntbktrader]

Don't rebate premium....pretty simple

 

[riskwriter101]

WOW.....Ntbktrader, you must be a marketing master....

anyone else who might have some real useful information?
I'd like to give giftcards and other valuable incentives for doing business with us. Is that rebating?

 

[0b1kanobee]

In Florida, if you rebate then you have to rebate everyone. You just can't pick and choose who you are going to rebate. You either rebate everyone or not.

It is best not to rebate though. You would be selling yourself short. Bring value and don't let that value be rebating.

What type of insurance are you considering this for?

 

[riskwriter101]

In Florida, if you rebate then you have to rebate everyone. You just can't pick and choose who you are going to rebate. You either rebate everyone or not.
It is best not to rebate though. You would be selling yourself short. Bring value and don't let that value be rebating.
What type of insurance are you considering this for?


Well we are a (P and C) independent agency and the split is 70% commercial lines -mostly premiums between $25k - $125k and 30% personal lines. Preferred packages (auto, home etc)
Thats what I'm wondering.. If I send out a renewal questionaire to be completed by the client. Hopefully, upsell from that as well. My enticement to fill out the renewal form would be say a gift card. Is that a present, or a rebate? I guess thats my main concern?

 

[0b1kanobee]

In Florida, if you rebate then you have to rebate everyone. You just can't pick and choose who you are going to rebate. You either rebate everyone or not.
It is best not to rebate though. You would be selling yourself short. Bring value and don't let that value be rebating.
What type of insurance are you considering this for?


Well we are a (P and C) independent agency and the split is 70% commercial lines -mostly premiums between $25k - $125k and 30% personal lines. Preferred packages (auto, home etc)
Thats what I'm wondering.. If I send out a renewal questionaire to be completed by the client. Hopefully, upsell from that as well. My enticement to fill out the renewal form would be say a gift card. Is that a present, or a rebate? I guess thats my main concern?

I don't see a problem with that. I do something similar. It is rebating if you are giving monies back from the sale of the policy. What you are doing is offering the same thing to all. I say you are in the clear if this is what you want to do. I say give it a shot. You don't know if you don't try but I don't see any legal problems here.

 

[Justin Bilyj]

If you want to rebate, then either hold a large party at the end of the year with some prizes, or buy a crap load of baseball/football tickets, and have a "blah agency sports day"....

 

[0b1kanobee]

If you want to rebate, then either hold a large party at the end of the year with some prizes, or buy a crap load of baseball/football tickets, and have a "blah agency sports day"....

What he wants to do is not rebating. Please read his question. This isn't a thread about rebating. It is a thread about a particular thing he wants to do which he is unsure of involves rebating or not. I don't think he wants to have a questionaire party either.
If you want to give an opportunity to get a gift card in the way you have presented it then go ahead and do so. If you want other ideas on how to do it then ask. I think you should try yours and see what kind of response you get. If you do it at least let me know the results if you would.

 

[bluemarlin08]

What would you do if you were approached by someone that offered to set up meetings with successful business owners that were his friends to audit there insurance. The guy offering to do this is unlicensed and wants a portion of the commissions earned as a "marketing" fee.

 

[0b1kanobee]

What would you do if you were approached by someone that offered to set up meetings with successful business owners that were his friends to audit there insurance. The guy offering to do this is unlicensed and wants a portion of the commissions earned as a "marketing" fee.

I would have to decline that offer. He is not licensed so this would be skating on too thin of ice for me. In Florida, you can't give a portion of the commissions to anyone who is not licensed. If this person was licensed then it wouldn't be an issue for me. Now if someone corrects me on the law or proves otherwise then that may change my mind. Until then I stand firm on this particular situation.